Fintech and the Remaking of Financial Institutions

Chapter 16

Social Issues

Diversity and Inclusion, Unemployment, and Income Distribution

Abstract

There are concerns about the negative impact of Fintech on diversity and inclusion, income distribution, and unemployment. US High Tech companies have lower proportions of women, black, Hispanic, American Indian, Hawaiian (NHOP), and multiracial workers than the average for all US private industries. CEOs at tech start-ups backed by VCs are estimated to be less than 3% female and less than 1% black. VC’s fund few start-ups founded by women, just 7%, and those start-ups received smaller funding amounts. VCs themselves have few women and minority employees. Tech advances are also likely to displace more than 1.8 million US and European bank workers within ...